Want A Long-Shot Bet?

by Karl Denninger

You’re going to think I’m out of my mind, given my view on the pharmaceutical business (and medical industry in general) — but it’s Valeant.

Certainly, you had an even better entry down under $29, but here’s the case for it: Current year earnings estimates of about $8.50 and next year estimates over $10.

That puts the P/E on current-year estimates at about 4.

A month ago this sort of number was justified given the outrageous execution risk, highlighted by a possible debt default due to failure to file scheduled reports.

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